Cal U. severing contract with concert venue group

California University of Pennsylvania is ending its contract with an Iowa company that manages the school's new $59 million convocation center.

School officials said they couldn't afford to keep paying VenuWorks, of Ames, Iowa, to run the 6,000-seat venue, which has been criticized by some as too costly and not drawing sufficient crowds since it opened early last year.

An April 2012 concert by Kenny Rogers sold fewer than 2,000 tickets, and a Bob Dylan concert in April was also less than half full. The Pittsburgh Tribune-Review reports the venue lost about $400,000 from nearly 100 events held in the first 16 months it was open.

"It is incredibly difficult to book and secure events for all arenas in all markets in today's world," John Siehl, the regional vice president for VenuWorks said in a statement, adding the company has nonetheless been satisfied by its ability to book events for the center.

University spokeswoman Christine Kindl said the success of events at the center was separate from the dollars-and-cents decision to end the contract. The university pays VenuWorks a base management fee of $10,416 per month, which the university couldn't justify as it struggles to cut costs, Kindl said.

"It's like anybody who's tightening a budget," Kindl said. "There are things you'd like to have but can no longer afford."

VenuWorks had three employees at the center, one of whom handles audio-visual equipment. That worker will be retained, but moved to the university's payroll, Kindl said.

VenuWorks will manage the center's daily operations through Nov. 11, meaning the company will still produce a Nov. 5 concert by former Creedence Clearwater Revival frontman, John Fogerty. The company will wrap up administrative tasks and pull out of the university altogether by Nov. 30.